Yushchenko urges government to cut budgetary expenses

President makes comments on inflation to ICTV

Ukraine

09:39, 14 April 2008

Answering the question about economic and financial situation in Ukraine, in his interview to ICTV President Victor Yushchenko named several issues and ways to resolve them, according to the President`s press-office.

First of all Victor Yushchenko urged the Government to cut budgetary expenses and budgetary deficit saying: "Government`s expenses and inflation are directly related". According to him the expenses during January and February has risen by 75 percent resulting in part in inflation.

Speaking about possibilities for National Bank to improve the situation President expressed his opinion that it has already done enough from its part. He also added that in such situation it would be wrong to expect from the NBU to give response to the situation by itself, without proper measures taken from other institutions.

When asked about anti-inflation measures as top priority President Yushchenko named providing national consumer goods producers. "This is the response which will begin working in three to four months yet if we not do it today, in the second half of the year we will be having even harder situation", he said.

Also pointing to the fact that prices for agricultural products are growing around the world, President said that Ukraine may benefit from that provided the agrarian policy in the country will be well thought out and effective.

Victor Yushchenko also approved National Bank of Ukraine keeping currency exchange rate for Hryvnya stable and said that the NBU should not be put under pressure from either politicians or from the government. According to him any discussions about Hryvnya`s stability only harm the financial climate.

According to Victor Yushchenko current rates of inflation are a great challenge for Ukraine so structural complex economic reforms are necessary to overcome the tendency in the long term.

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